Sahara seeks review of Supreme Court's ruling to refund Rs 17,400 crore to investors

NEW DELHI: Sahara Group on Friday sought a review of the Supreme Court's August 31 order asking it to refund to investors within three months Rs 17,400 crore raised by its two companies along with 15% interest.

While claiming that all its investors were genuine and re-affirming its commitment to refund the money, Sahara said it was seeking a review of the order to protect its image in the eyes of the public. The verdict casts "serious aspersions" upon the firm's business ethics, the group said in its petition.

The company claimed that two of its unlisted companies-Sahara India Real Estate Corporation and Sahara Housing Investment Corporation-had raised Rs 17,400 crore through Optionally Fully Convertible Debentures as it was under the impression that money could be raised by unlisted entities bypassing market regulator Sebi, the petition said.

It claimed that the apex court had decided the case on facts without going into the issue of law raised by the company on the powers of the Securities Appellate Tribunal, which had upheld Sebi's direction to pay back the money to investors. The petition said that the court had also ignored that fact that Sahara was an unlisted company that did not intend to list its shares or debentures on any recognised stock exchange, and could only be covered under the Companies Act.